THE Government is closely monitoring recent trade policy developments in the United States, particularly in response to President Donald Trump’s announcement of a 10 percent tariff on imports from all countries, while reaffirming its commitment to open, rules-based trade.
Minister of Investment, Trade and Industry, Datuk Seri Johari Abdul Ghani, said Malaysia is awaiting further clarification on how the tariff will be implemented and whether additional adjustments will follow.
He emphasised that Malaysia has not yet ratified the Malaysia-US Reciprocal Trade Agreement (ART), despite signing it in October 2025.
"We have taken note of the latest announcement by President Trump regarding the temporary 10 percent tariff, and we are reviewing the scope and implications," Johari said in a statement.
"At this stage, we are waiting for further explanation on how the measure will be enforced and whether any further adjustments will be made."
The announcement follows a ruling by the United States Supreme Court on February 20, 2026, which deemed that Trump’s prior use of emergency powers to impose so-called reciprocal tariffs on almost all US trading partners was unconstitutional.
In response, Trump issued a 10 percent tariff on imports from all countries, effective immediately, confirming the measure via his social media platform, Truth Social, from the Oval Office.
Under the ART, Malaysia previously faced reciprocal tariffs of 19 percent as part of negotiated terms. Johari highlighted that while the Supreme Court’s decision limits certain presidential powers, the United States retains other legal mechanisms to enact trade measures, including unilateral tariffs.
Despite these developments, Malaysia intends to remain steadfast in promoting stable, predictable trade relations.
"Our position is clear and consistent — Malaysia remains committed to open and rules-based trade, maintaining a stable business environment, and protecting the interests of Malaysian exporters, international investors, businesses operating locally, and workers across the economy," Johari said.
He added Malaysia’s strategy to diversify trade partnerships and strengthen regional and multilateral economic cooperation to safeguard resilience in a rapidly evolving global trade landscape.
"We will act in Malaysia’s best interests while maintaining strong bilateral relations with the United States," he said.
Johari noted the strategic importance of the US economy, with a gross domestic product of approximately US31 trillion.
Bilateral trade between Malaysia and the United States reached around RM367 billion last year, including RM233 billion in Malaysian exports, underscoring the long-standing role of the US as a key trading partner. - February 21, 2026
